Journalist
Published:
Ethereum (ETH) looks bigger if you count heads. Bitcoin (BTC) looks stronger if you count coins.
On paper, the former outperforms the latter in terms of user participation. But the supply of Bitcoin on exchanges declines in a much more controlled manner, while the liquidity of Ethereum evolves quite differently.
The contrast says a lot about how each asset is used, owned and valued today.
The user advantage of Ethereum
As of press time, the network has 167.96 million non-empty wallets, almost three times Bitcoin’s 57.62 million. This gap is important because it shows that Ethereum is being used.
Source: Santiment
Ethereum wallets are now active endpoints across the board. The increase in the number of non-empty wallets means that new users continue to enter the ecosystem, even if prices move sideways. Bitcoin, on the other hand, remains more concentrated.
AMBCrypto previously reported that Ethereum network growth hit a multi-month high in December and new wallet creation was increasing.
Data from Santiment showed that nearly 200,000 new ETH wallets were added on December 2 and 15, levels not seen since Ethereum’s late summer rally.
The contrast is clear
While Ethereum leads wallet activity, the supply of Bitcoin on exchanges has tightened.
According to Glassnode, BTC exchange balances have gradually declined from around 2.98 million in mid-November to around 2.94 million in mid-December. Despite price fluctuations, holders are not rushing to sell.
Source: Glassnode
Foreign exchange balances are important because they show immediate selling pressure. Coins held on exchanges are less likely to be traded quickly. In this sense, the decrease in Bitcoin trading means trust, even with fewer wallets in general.
What ETH/BTC says
The pair attempted a short breakout in early December, but failed to maintain its gains and quickly reversed. Since then, ETH has struggled to outperform BTC on a relative basis, with rebounds proving shallow and short-lived.
Even as Ethereum attracts more and more users, capital continues to favor the stability of Bitcoin.
Source: TradingView
Traders appear more comfortable holding BTC during periods of uncertainty, while ETH remains more risk-sensitive. So far, strong participation has not translated into relative price dominance.
Final Thoughts
- Ethereum leads in user numbers with 168 million wallets, but Bitcoin’s decreasing exchange supply shows better confidence.
- Until ETH/BTC regains momentum, Bitcoin remains the favored asset.
